Fannie Mae Valuation - Call update

I'm sure many of you are anxiously waiting for information regarding the results of the conference call set up to discuss issues with Fannie Mae evaluations on Fannie Mae short sales. I will attempt to summarize said call, but first, I want to point out once again the value that NAR provides for our industry. Without their continued commitment to fight for our causes, this would not have taken place.

Probably the best way to summarize the call is that is was an open, direct and passionate discussion. Some of the highlight points were:

1. Clarified the Fannie valuation issue is now the rule -not the exception re: Fannie Mae short Sales

2. This appears to be a Fannie Mae problem - not the servicers

3. This is not an isolated geographic problem, but generally throughout the country

4. There appears to be some signs that we are seeing the same trend maybe beginning with Freddie


I believe the main objective was to provide sufficient date to show this issue is real and needs quick attention. I feel this objective was met. I believe NAR and FHFA are truly committed to work with FHA to find solution(s). Recently, Fannie Mae working with NAR initiated the Homepath Short Sale web site and one of the proposed segments of this site is to be able to escalate valuation issues. Many of you may already know about this site, but those who don't, please use the link below and check it out.

http://www.homepathforshortsales.com/

It was agreed there would be continued communication. I would suggest that you work closely with your local and/or state Realtor Associations and provide good, concise examples of Fannie Mae short sales that you can "factually" show examples where Fannie is using values that are clearly in excess of FMV. I will attempt to keep you posted on updates if and when I received them. Thanks again for all your support and response

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Replies to This Discussion

Permalink Reply by Douglas Juenke on January 9, 2013 at 11:22am

HI Ken,

 You know if it walks like a duck, talks like a duck, shoot it!  First and foremost, Thank You for your efforts, HOWEVER, fannie mae is one giant cluster and they are going to do nothing to fix this completely fraudulent manipulation of our markets.  Those idiots have been given over ONE HUNDRED THOUSAND MILLION DOLLARS ( that is $100 Billion for the media) to just stay afloat and they are completely screwing the pooch.  Just today we were informed by a WF negotiator after once again getting a bogus counter based upon a non-appraisable price that fannie has a new "directive" that will not allow for value disputes. Bet they did not tell you that in your meeting?  I am extremely appreciative of yours and NAR's efforts but Fannie is point blank lying to our faces and they do not care.   Until their practices are brought out in the public they will continue to do it.  We fund that "enterprise" and we fund them when they are short and our payback is that we agents get to lose sleep, stress out and deal with their bad decisions.  I do not mean to rant, but everything that was "achieved" was nothing new and they are not changing anything, and I do hope I that am wrong on that last part. 

Permalink Reply by Phillip Allen on January 9, 2013 at 1:32pm

unfortunately Doulas, you are exactly right...!!!

Permalink Reply by Brian Del Terzo on January 14, 2013 at 4:43am

We have been advised that any statement given that Fannie Mae will not allow a value dispute is entirely unfounded.  Just last week we received the following instructions directly from Fannie Mae: 

When disputing Minimum Net Reserve, at least one of the following documents must be included in the submission for review:

  • Appraisal or Buyer's BPO (BPO that the Servicer did not order)
  • CMA Report (w/ comp with colored photos and descriptions), Listing History & Realtor Comments
  • MLS Sheets of 3 to 6 Comps, photos, Listing History & Realtor Comments
  • Inspection Report with color photos of repairs needed
  • Detailed Contractor's Estimate with color photos of repairs needed.
Permalink Reply by Phillip Allen on January 14, 2013 at 6:26am

Brian, I haven't read here anyone claiming FNMA is not allowing value disputes; many of us have questioned  their sincerity to fairly and efficiently resolve them.

YES, the (5) documents you list are all items necessary to support a value dispute; however, all of them are required documents or should be included in any complete application for short sale consideration. Although an appraisal or independent BPO is not usually needed. So at best these items are redundant.  

The question which remains and unresolved is why is FNMA as well as other secondary investors not following traditional means supported by creditable market data to determine FMV; rather they are finding unsupported factors in determining their required minimum NET... which, by the way is always higher than what the market will support.

Permalink Reply by Mega-Pros on February 14, 2013 at 2:31pm

@ Douglas: "AGREED"

Permalink Reply by Kathleen Lordbock on January 9, 2013 at 5:11pm

I have a Fannie SS now that was countered by WF at $57000 on Equator. Buyer ran away. Now it is off Equator and in the redemption period. They countered a new offer of $52000 with a purchase price of $80,580. Makes no sense and there are 8 similar homes in this small town that are selling (REOs) for $39900- $49900.

Permalink Reply by Paul (No Bad Days) Smith on January 10, 2013 at 4:39am

Morning All

Ken,

Are you still looking for examples?

We have one in Colorado

Permalink Reply by Ken Ryan on January 10, 2013 at 5:05am

Hi Paul

At this time, I'm not, however, if you have good examples you know are Fannie loans and have this value issue, I suggest you notify your State Realtor Associaition and urge them to take an active role in communicating with NAR.

Good luck and thanks

 

Permalink Reply by Lynn Ganster on January 10, 2013 at 5:23am

Thanks Ken for your interest and taking the lead in getting this serious issue resolved.  

Permalink Reply by Patrick Perkins on January 10, 2013 at 6:23am

Thank you so much for your time on this, unfortunately this will set the short sale business back if it continues to happen, which I hope it wont.

Permalink Reply by Phillip Allen on January 10, 2013 at 7:13am

Unfortunately this will not go away... it's contagious...!!! it's like the flu... ALL the investors (FHLMC, INDYMC) are going to catch on... they are creating their on market & there's no regulatory body to intervene...!!!

Permalink Reply by The Josh Marquez Team on January 10, 2013 at 6:44am

Well seems i am not the only one, File was approved on November 2012 for $135,500 buyer could not performed (FHA) got a new offer within a few days  $140,000 Negotiator counter to $172,500 with a Fannie Mae Over the counter Value, i have a full appraisal that the previous buyer kindly release to us, Negotiator seems like she has no idea of what to do sale date is February 05 2013 i already contacted Fannie mae through their website see if that helps any input or people i can reach to greatly appreciated thank you!!

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